Do vendors expect asking price if property is new to the market?

Loopy28

The property has been on the market for a fortnight.

We are the only interested party at present, we have told EA we will make an offer but haven't done so yet.

Will they be expecting asking price this early on? Or do you think most people price slightly higher than they want?

Personally I think it is about 5k overpriced and was going to offer accordingly.

I always feel apprehensive about offering on a new to market property as last time I offered asking price and the vendor came back to say they wanted 5k more!

ManuelG

Why so nervous?

A house is only worth what it's worth to you, and likewise the seller will have a price in mind.

It's not personal, you don't know them, so I'd offer what you think it's worth and see what happens. If they say no? Then it's nothing personal.

And if in six months it's still there, they might then say yes.

Of course, they might say yes now, but if you don't ask.

Hoploz

What sort of price is it? 5k sounds a reasonable opening offer

Loopy28

Thanks. Property is asking price 190k, I was going to offer 185k. Yes it could go either way and I don't think it is low enough to offend lol although you are right, it doesn't matter anyway!

phoebe1989seb

Our recent experience -

We put our house on the market at the beginning of September at a price slightly lower than the average valuation (after having five EAs round) and as we had only minimal interest (less than five viewings) in the first month and we were hoping for a quick sale as we'd already found the house we wanted to buy, we decided to drop the price to £10k over the minimum we were prepared to accept in order to facilitate this.

We then had three viewings in as many days and received three offers - two at £15k under asking price (one from a cash buyer) and one at asking price. We went back to the cash buyer in an attempt to get them to increase their offer - even £5k more we would have accepted with her being in a better position - but she was at her maximum, so we went with the asking price offer.

There were no major issues with the survey - despite this being a period, thatched property - and even after their buyer reduced their offer we didn't have to enter into ant negotiations over price and exchanged on Friday.

What I'm trying to say is that we would have accepted a little less than asking price - bearing in mind we were on the market five weeks in total - but in the end didn't have to. We are in an area where properties - especially mid-price range such as our own - can take twelve months to sell which obviously has an impact and also we were motivated sellers, which many are not ;)

Edited to add - our asking price was around £400k

Old_Git

offer £8,000 below the asking price then you can increase it if you need to .

Loopy28

Thanks for your reply. The house we are buying has no chain, it is currently owned by a landlord who wants to sell it with vacant possession as they are emigrating.

Not sure how motivated that will make them, it isn't priced unreasonably, looking at recent sales of the same properties it is about 5k over. The property next door,which is identical in size and layout has just gone to sale agreed and had the same asking price (not sure what price they took for it) but the interior was much better, only minor things such as better flooring, an interior wall was removed opening up the lounge and decor was better but obviously made it look more attractive in comparison to this one.

I guess I can only make my offer and see what they say

stator

Some people will be hoping for full asking price. Some people will put it on at 5-10% more in the expectation of being haggled down. Just make your offer and cross your fingers

rosie383

If you think it is overpriced by 5k then I agree with old git. Go in at 8k which gives you a wee bit of room to come up.

questionss

Another vote - I'd go in 8-10k under asking and be prepared to negotiate to what you think it's worth

TBagpuss

I think it is one of those 'how long is a piece of string' questions.
However, if you think it is overpriced by £5K then make an initial offer at £8K below and be prepared to negotiate up to the price you feel is right. Then stop.

They may accept, they may reject it, in which case you can look elsewhere.

When I sold my house, it went on at about 5% above what I would have been happy to accept. (then got lucky and sold for full asking price!) I would probably have gone slightly lower than my 'happy to accept' price if the buyers had negotiated as I had had one sale fall through and was under pressure from my sellers.
On the other hand, the house I initially offered on, the sellers would not budge at all, despite the house being overpriced for what it was and having been on the market for several months already. That was just over a year ago and they still have not sold it. They have marginally reduced the price but it is still overpriced.